Short sale advice needed

[Linda Young]

Hi BP friends,

I just found another house today that needs no repairs or updating, just cleaning and a few minor tweaks. Selling agent has it listed for $1 and said it is a short sale. My broker discourages short sales so I have never done one. If other homes are selling for $130-140k what would you offer? Also, do banks always require a cash sale? Thanks for all advice!

[Christine Kankowski]

Its a bummer that your broker discourages short sales because, although they are more work and time, there are really good deals to be had. Banks will have an appraisal (BPO) done on the property so they have an idea of its worth. I would offer $110. (Bank might counter back) Submit the offer with a loan. It does not need to ba all -cash. They will not do repairs or pay for some items that sellers sometimes pay for- Home warranty, HOA fees, etc.

One thing they do not allow many times is you representing yourself as the buyer.  Get another agent who does short sales to write up the offer for you and get a referral fee back from her.  It may take a few months to hear back, but its worth the wait if you get it that far under value.